Labor Cost Management
Learn how LiveHR predictive scheduling helps reduce labor costs
One of the toughest challenges facing restaurants today is hiring and managing employees. Restaurants need the proper number of employees to serve customers quickly and efficiently. Don’t schedule enough and the wait times are long, resulting in a poor customer experience or lost revenue. Schedule too many people and you’re paying employees to stand around. One sure way to increase restaurant performance improvement (RPI) is creating optimized schedules. LiveHR, from LIVELENZ, factors past sales, peak times, operational requirements (opening and closing) as well as national and local labor laws to create an optimized schedule. Add to that, real-time notifications to owners and managers when there is a prolonged labor overages and you can now be sure your restaurant is running as efficiently as possible.
In the past, owners and managers could only tell if there was a labor overage (sales/labor hour below an acceptable ratio) at the end of a day or week. Now, real-time reporting, text alerts or emails notify owners/managers/supervisors when a store is in a labor overage. Then, the supervisor on duty can decide what to do – send employees home.
Another way technology can help with labor cost management is stopping employees from stealing time. It’s estimated that as much as 4% of total labor cost can be attributed to employees clocking in early or punching in for a friend. New technology, such as fingerprint scanners and shift controls – preventing early clock-ins or extended shifts – will eliminate paying employees when they are not working.
Often overlooked is the cost associated with scheduling and paying employees. It’s classified as administrative cost, but you can now save time (and money) there too. LiveHR not only creates predictive schedules and stops over paying, but it saves time creating multiple schedules and integrates easily with the leading accounting software, such as ADP, Quickbooks and Peachtree.